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Venezuela´s Foreign Exchange Policies

June 25, 2009 — sbbcentcom

Venezuela’s foreign exchange policies are chocking company’s ability to source raw materials and from abroad. Both national and multinationals are affected alike. The stifling of international trade will eventually have dire consequences for Venezuela’s economy and its ability sustain its social policy.

Economic woes

The fall in the oil price has precipitated a reduction in the inflows of dollars into Venezuela and forced the government to seriously limit the availability of official dollars. This has resulted in reductions in Venezuelans’ access to currency as well as the quantities and goods that can be imported with dollars at the official rate (with preference given to food imports to allay discontent over continued shortages).